Office of Research Services

Budgeting Subcontracts

For budgeting purposes, the subcontract (or subgrant) should be identified in the
proposal budget as a separate line item. The item should be noted and a cost breakdown
for the subcontract should be referenced as an attachment to the main proposal budget.
The subcontract budget should reflect all appropriate direct and indirect (F&A - Facilities
and Administrative Costs) costs. (Educational institutions should include F&A costs
at their current federally negotiated rates.) Subcontract budgets must be approved
by appropriate officials of the proposed subcontractors preferably before the proposal
is submitted.

The first $25,000 of EACH subcontract in your proposed budget will be included in
the Modified Total Direct Cost (MTDC) base used for calculating F&A cost.

TTU will not limit the F&A recovery by the subcontractor unless required to do so
by the agency (which most will not do).